HK Stock Market Move | Car stocks are generally under pressure, with over 30 brands announcing price cuts at the beginning of the year. The China Association of Automobile Manufacturers has warned that the price war in the car market this year will be even more intense.

In the stock market, automobile stocks are generally under pressure. As of the time of writing, Great Wall Motor (02333) fell by 3.45% to HK$12.86; LI AUTO-W (02015) fell by 2.72% to HK$85.75; XPENG-W (09868) fell by 0.89% to HK$50.15. On the news front, Cui Dongshu, Secretary General of the China Passenger Car Association, recently analyzed that the scale of new energy vehicles is showing explosive growth, with a significant increase in batch size and a significant decrease in per-vehicle cost. The competition among top players in the industry is still unsettled. Therefore, in this high-growth market, the "price war" is expected to continue into 2025 and will be extremely fierce. According to statistics, more than 30 brands have announced price cuts since the beginning of the year. BOCOM INTL stated that benefiting from the trade-in of old vehicles for new ones, the automobile industry in Shanxi Guoxin Energy Corporation is showing strong growth momentum in 2024. The penetration rate of new energy vehicles reached 47% in the first ten months of 2024. With the release of more extended-range/hybrid models, the bank expects the penetration rate of new energy vehicles to further increase in 2025. However, caution is needed as the market enters a slow sales season after the December sales push in 2024, leading to intensified competition and price wars in the market.